FACTORS THAT CONTRIBUTED TO THE RISE OF MERCANTILISM IN EUROPE
FACTORS THAT CONTRIBUTED TO THE RISE OF MERCANTILISM IN EUROPE
There are various factors that contributed to the rise of mercantilism in Europe;
Improvement of science and technology.
This played a great role to the rise of mercantilism. Maritime technology made it possible for the European countries to conduct trade overseas. The ships enabled the transportation of large quantities of goods to various countries in the world.
Development of internal trade.
The development of internal trade contributed significantly to the rise of mercantilism because it introduced various items of trade. These goods were exchanged with other goods during the Trans – Atlantic slave trade, the Europeans provided Africans with clothes and spirit in return for goods such as gold and silver.
Enclosure system.
The enclosure system involved passing laws by the parliament whereby wealthy land owners bought land from the peasants. The small peasants and common land in villages of Britain had to be grouped together and out under individual capitalist‟s farms. The enclosure system increased agricultural production that facilitated trading activities.
Development of the banking system.
There were various banks that were established in Britain e.g. Barclays bank. These banks contributed to the rise of mercantilism by providing loans and grants to the merchants who wanted to trade overseas.
Rise of nation states.
The rise of nation states contributed to the rise of mercantilism in Europe. European monarchies such as the Tudor monarchy played a great role in the rise of mercantilism by giving security to the merchants which encouraged them to engage in mercantile activities.
Geographical discoveries.
This was made by different scholars, contributed to the rise of mercantilism. Christopher Columbus discovered America which was followed by the establishment of capitalist enterprises such as farms and mining which encouraged trading activities.
Rise of the Trans Atlantic slave trade.
The Trans Atlantic slave trade was an economic system that involved three continents i.e. Africa, Europe and America. The trading system consolidated mercantilism by making it possible for European countries to trade with Africa and America. Africa provided slaves, America produced raw materials and Europe provided manufactured goods.